The SEC charged Wells Fargo's brokerage firm and former vice president for selling investments tied to mortgage-backed securities without fully understanding their complexity or disclosing the risks to investors. According to the Order, Wells Fargo's sales representatives largely relied on the high rating of the securities without understanding their risk. [Lofchie Comment: This is essentially a negligence case, as opposed to one predicated on intentional wrongdoing.] Cross-Reference(s): Securities Act Sec. 8A, 17(a)(2), 17(a)(3); SEA Sec. 15(b); ICA Sec. 9(b); 466 US 680; Sarbanes-Oxley Act

C2 - Effective Immediately - Change Relating to the Options Regulatory Fee CBOE - Effective Immediately - Change Relating to the Options Regulatory Fee NDTC - Effective Immediately - Change to Enable The Depository Trust Company to Collect and Pass through Certain Fees Owed by Participants to Transfer Agents in Connection with the Deposit and Withdrawal at Custodian System ISE - Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change to List and Trade Option Contracts Overlying 10 Shares of a Security ISE - Effective Immediately - Amend Fees for Certain Regular

Further Definition of "Swap," "Security-Based Swap," and "Security-Based Swap Agreement"; Mixed Swaps; Security-Based Swap Agreement Recordkeeping -- Joint final rule; interpretations; request for comment on an interpretation (CFTC/SEC - Fed. Reg. Version) The Commissions' definition of "swap" is now in the Federal Register. Accordingly, the effective date of many of the CFTC Rules, which were due to come into effect in a specified number of days after such publication, may now be determined. [Steven Lofchie Comment: The definition of "swap" has been narrowed somewhat from the proposed version

The SEC is amending interim final temporary Rule 15b12-1T under the Exchange Act to extend the date on which the rule will expire from July 16, 2012 to July 16, 2013. [Lofchie Comment: The questions to which we all want answers: What is an "extension of a final temporary rule"? Is that different from an extension of an "interim final temporary rule"? And what is the interim between? More seriously, this interim final temporary rule is further reflective of the myriad unintended consequences of Dodd-Frank. No one is quite sure of whether routine currency exchanges in connection with routine

The SEC (not merely the staff) issued an order permitting an issuer that is a business development company, registered under the Investment Company Act, to conduct share repurchase during a period when it is engaged in a continuous distribution of its shares. The order is subject to substantial conditions including that there is no trading market in the issuer's shares, that there are volume limits on the number of shares purchased, and that the repurchase price for any share does not exceed the then current offering price of the issuer's stock. See generally: Lofchie's Guide to Broker-Dealer